EXHIBIT 12-18

DTE ENERGY COMPANY

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


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|------------------------------------------------------- | -------------------------------------------- | ---------------------------------------- | ---- | ---------------------- | --- | ---- | ----- | ---- | --- | - | ----- | --- | --- | - | ----- | --- | --- | 
|                                                        |                                              | Six                                      |      |                       
|                                                        |                                              | Months                                   |      | Year Ended December 31
|                                                        |                                              | Ended                                    |      |                       
|                                                        |                                              | 6/30/99                                  |      | 1998                   |     | 1997 |       | 1996
|                                                        |                                              |                                          |      |                        |     |      |       |     
|                                                        |                                              |                                         
|                                                        |                                              | (Millions, except for ratio and percent)
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|Net income                                              |                                              | $                                        | 225  |                        |     | $    | 443   |      |     | $ | 417   |     |     | $ | 309   |    
|                                                        |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
|Taxes based on income:                                  |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
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|                                                        | Income taxes                                 |                                          |      | 27                     |     |      |       | 154  |     |   |       | 257 |     |   |       | 221 |    
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|                                                        | Municipal and state                          |                                          |      | 2                      |     |      |       | 3    |     |   |       | 4   |     |   |       | 3   |    
|                                                        |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
|                                                        |                                              | Total taxes based on income              |      |                        | 29  |      |       |      | 157 |   |       |     | 261 |   |       |     | 224 | 
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|Fixed charges:                                          |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
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|                                                        | Interest expense                             |                                          |      | 165                    |     |      |       | 319  |     |   |       | 297 |     |   |       | 291 |    
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|                                                        | Allowance for funds used during construction |                                          |      | 3                      |     |      |       |     |     |   |       |    |     |   |       |    |    
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|                                                        | Interest factor of rents                     |                                          |      | 17                     |     |      |       | 34   |     |   |       | 34  |     |   |       | 34  |    
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|                                                        | Preferred stock dividend factor              |                                          |      |                       |     |      |       | 7    |     |   |       | 18  |     |   |       | 26  |    
|                                                        |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
|                                                        |                                              | Total fixed charges                      |      |                        | 185 |      |       |      | 360 |   |       |     | 349 |   |       |     | 351 | 
|                                                        |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
|Earnings before taxes based on income and fixed charges |                                              | $                                        | 439  |                        |     | $    | 960   |      |     | $ | 1,027 |     |     | $ | 884   |    
|                                                        |                                              |                                          |      |                        |     |      |       |      |     |   |       |     |     |   |       |    
|Ratio of earnings to fixed charges                      |                                              |                                          | 2.37 |                        |     |      | 2.67  |      |     |   | 2.94  |     |     |   | 2.52  |    
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|Preferred stock dividends                               |                                              | $                                        |     |                        |     | $    | 6     |      |     | $ | 12    |     |     | $ | 16    |    
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|Dividends meeting requirement of IRC Section 247        |                                              | $                                        |     |                        |     | $    | 4     |      |     | $ | 4     |     |     | $ | 4     |    
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|Percent deductible for income tax purposes              |                                              |                                          |     |                        |     |      | 40.00 | %    |     |   | 40.00 | %   |     |   | 40.00 | %  
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|Amount deductible                                       |                                              |                                          |     |                        |     |      | 2     |      |     |   | 2     |     |     |   | 2     |    
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|Amount not deductible                                   |                                              |                                          |     |                        |     |      | 4     |      |     |   | 10    |     |     |   | 14    |    
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|Ratio of pretax income to net income                    |                                              |                                          |     |                        |     |      | 1.35  |      |     |   | 1.61  |     |     |   | 1.69  |    
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|Dividend factor for amount not deductible               |                                              |                                          |     |                        |     |      | 5     |      |     |   | 16    |     |     |   | 24    |    
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|Amount deductible                                       |                                              |                                          |     |                        |     |      | 2     |      |     |   | 2     |     |     |   | 2     |    
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|                                                        |                                              | Total preferred stock dividend factor    |      | $                      |    |      |       | $    | 7   |   |       | $   | 18  |   |       | $   | 26  | 
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